Bank of Oak Ridge Reports Higher First Quarter Net Income Compared to Same Period Last Year.OAK RIDGE Oak Ridge, city (1990 pop. 27,310), Anderson and Roane counties, E Tenn., on Black Oak Ridge and the Clinch River; founded by the U.S. government 1942, inc. as an independent city 1959. , N.C. -- Bank of Oak Ridge (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BKOR) today reported net income for the first quarter of 2005 of $59,000, compared with net income of $29,000 for the same period in 2004. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of was $0.03 cents for the first quarter of 2005, compared with diluted earnings per share of $0.02 cents for the same period of 2004. Bank of Oak Ridge President, Ron Noun 1. Ron - a Chadic language spoken in northern Nigeria Bokkos, Daffo West Chadic - a group of Chadic languages spoken in northern Nigeria; Hausa in the most important member Black, in commenting on the results, noted, "We are very pleased with the results in the first quarter of 2005. We continue to have year-to-year increases of greater than 30 percent in loans receivable and deposits. I would like to thank our employees for producing the strong growth in the first quarter of 2005, at the same time we were upgrading our data and items processing systems." Comparison of Operating Results for the three months ended March 31, 2005 and 2004 Net Interest Income Bank of Oak Ridge's net interest income in the first quarter of 2005 was $1,139,000, up $287,000, or 34 percent, from $852,000 in the first quarter of 2004. The net interest margin in the first quarter of 2005 was 3.57 percent, compared with 3.47 percent for the same period in 2004. The 10 basis point increase in the net interest margin in the first quarter 2005 over the same period in 2004 is primarily a result of a 62 basis point increase in earning asset Earning asset An asset that generates income, e.g., income from rental property. yields, offset by a 55 basis point reduction in funding costs during the two periods. An increase of $30.0 million in average interest-earning assets, and an increase of $28.5 million in interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities from the first quarter of 2004 to the same period in 2005 also contributed to the improvement in the net interest margin from 2004 to 2005. Provision for Loan Losses The provision for loan loss decreased to $66,000 for the three months ended March 31, 2005 compared to $89,000 for the same year ago period. The primary reason for the decrease in 2005 was stronger loan growth in the first quarter of 2004 compared to the same period in 2005. The allowance for loan losses to total loans was 1.10, 1.11 and 1.00 percent at March 31, 2005, December December: see month. 31, 2004 and March 31, 2004, respectively. Non-interest Income Non-interest income totaled $227,000 for the 2005 first quarter, up $54,000, or 31 percent, from $173,000 for the 2004 first quarter. Increases from 2004 to 2005 in service charges on deposit accounts, net realized gain Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. on sale or call of investment securities available for sale, mortgage loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. fees, income earned on bank owned life insurance and other non-interest income of $24,000, $2,000, $11,000, $19,000 and $7,000, respectively, offset a $9,000 decline in investment and insurance commissions from 2004 to 2005. Non-interest Expense Non-interest expense totaled $1,241,000 for the 2005 first quarter, up $334,000, or 37 percent, from $907,000 for the 2004 first quarter. Salaries and employee benefits increased $138,000, or 33 percent, to $553,000 compared to the first quarter of 2004, due to a higher number of bank employees in 2005 first quarter compared to the same period in 2004. The increase in data and items processing expenses of $85,000, or 105 percent, to $166,000 compared to the first quarter of 2004 is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. costs associated with the Bank's conversion from an outsourced Outsourced is a modern day comedy of cross-cultural conflict and romance, directed by John Jeffcoat, released in 2007. Synopsis Todd Anderson (Josh Hamilton) spends his days managing a customer call center for American Novelty Products in Seattle, until his job, data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a system to an in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. data processing system in March of 2005, as well as a higher number of loan and deposit accounts between the two periods. Other non-interest expenses increased $82,000, or 36 percent, to $308,000, primarily as a result of one-time costs associated with the conversion to an in-house data processing system. Comparison of Financial Condition at March 31, 2005 and 2004 Loans Bank of Oak Ridge's lending operations continue to generate strong growth. Loans totaled $93.0 million at March 31, 2005, up $21.8 million, or 30 percent, from $72.2 million at March 31, 2004. The average yield on loans was 6.33 percent for the 2005 first quarter, up 71 basis points from 5.62 percent for the same period in 2004. Investments Investments, which consist of interest-bearing deposits with banks, federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve sold, securities available-for-sale and held-to-maturity, and Federal Home Loan Bank stock, totaled $35.7 million at March 31, 2005, up $6.6 million, or 23 percent, from $29.1 million at March 31, 2004. The average yield on investments was 4.17 percent for the 2005 first quarter, up 38 basis points from 3.79 percent for the 2004 first quarter. Deposits Deposits totaled $101.4 million at March 31, 2005, up $27.1 million, or 37 percent, from $74.3 million at March 31, 2004. The average cost of interest-bearing deposits was 2.29 percent for the 2005 first quarter, up 34 basis points from 1.95 percent for the 2004 first quarter. Borrowings Borrowings totaled $21.5 million at March 31, 2005, up 5.9 million, or 34 percent, from $17.3 million at March 31, 2004. The average cost of other borrowings was 2.69 percent for the 2005 first quarter, up 125 basis points from 1.44 percent for the 2004 first quarter. Stockholders' Equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. Stockholders' equity totaled $14.4 million at March 31, 2005, down $469,000, or 3 percent, from $14.9 million at March 31, 2005. Nonperforming Assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. Nonaccrual and accruing loans greater than ninety days past due totaled $741,000 at March 31, 2005, up $65,000, or 10 percent, from $676,000 at December 31, 2004. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $631,000 of the total nonaccrual and accruing loans greater than ninety days past due at March 31, 2005 were secured by first deeds deed n. 1. Something that is carried out; an act or action. 2. A usually praiseworthy act; a feat or exploit. 3. Action or performance in general: Deeds, not words, matter most. of trust on either commercial or residential properties. Management believes that the loan loss reserves allocated to these loans are adequate to cover any anticipated losses. Nonperforming loans to total loans were 0.79 percent, 0.77 percent, and 0.21 percent at March 31, 2005, December 31, 2004, and March 31, 2004, respectively. About the Bank of Oak Ridge Bank of Oak Ridge is a community bank headquartered in Oak Ridge, NC with more than $139 million in assets as of March 31, 2005. The bank currently has offices in Oak Ridge and Summerfield Summerfield is the name of some places in the United States of America:
Broad landscaped avenue that typically permits several lanes of vehicular traffic as well as pedestrian walkways. The earliest boulevards originally followed the city walls (the word originally meant “bulwark”) and were built in the ancient Middle . The Bank of Oak Ridge offers a complete line of banking services, including savings and checking accounts, mortgage and business loans, Saturday Saturday: see week; Sabbath. hours, same-day deposits, business and personal internet banking, internet bill payment and accounts designed specifically for seniors, small businesses and civic organizations. For more information, contact Bank of Oak Ridge at 336-644-9944, or visit www.bankofoakridge.com. Forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. Information This earnings release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. with respect to the financial condition, results of operations and business of the Bank. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of the Bank and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate" and "believe," variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, (1) competition in the Bank's markets, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. than expected, resulting in, among other things, a deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in credit quality and the possible impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of collectibility of loans, (4) legislative or regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes, including changes in accounting standards, (5) significant changes in the federal and state legal and regulatory environment and tax laws, (6) the impact of changes in monetary and fiscal policies, laws, rules and regulations and (7) other risks and factors identified in the Bank's other filings with the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. . The Bank undertakes no obligation to update any forward-looking statements.
Bank of Oak Ridge
Financial Highlights (dollars in thousands, except share and per
share data)
Three months ended
March 31,
----------------------
2005 2004 Change
----------- ---------- --------
Income Statement Data:
Total interest income $1,799 $1,236 45.6 %
Total interest expense 660 384 71.9
----------- ----------
Net interest income 1,139 852 33.7
Provision for loan losses 66 89 (25.8)
Non-interest income 227 173 31.2
Non-interest expense 1,241 907 36.8
Provision for income taxes - - n/a
----------- ----------
Net income (loss) $59 $29 103.4
=========== ==========
Per share data and shares outstanding:(1)
Basic net income (loss) per share $0.03 $0.02 50.0 %
Diluted net income (loss) per share 0.03 0.02 50.0
Book value at period end 8.06 8.33 (3.1)
Weighted average number of common shares
outstanding (000's):
Basic 1,789.5 1,546.1 15.7 %
Diluted 1,825.0 1,564.6 16.6
Shares outstanding at period end 1,789.5 1,789.5 -
March 31, March 31,
Balance sheet data 2005 2004 Change
----------- ---------- --------
Total assets $139,381 $106,626 30.7 %
Loans receivable 94,017 72,206 30.2
Allowance for loan losses 1,034 722 43.2
Other interest-earning assets 36,039 29,104 23.8
Total deposits 101,432 74,309 36.5
Borrowings 23,177 17,250 34.4
Shareholders' equity 14,432 14,901 (3.1)
Three months ended
March 31,
-----------------------
Selected performance ratios: 2005 2004
----------- ----------
Return (loss) on average assets (2) 0.18 % 0.11 %
Return (loss) on average stockholders'
equity (2) 1.61 0.92
Net interest margin (2)(3) 3.57 3.47
Net interest spread (2)(4) 3.30 3.23
Noninterest income as a % of total
revenue 16.6 16.9
Noninterest income as a % of average
assets (2) 0.7 0.7
Efficiency ratio (5) 90.85 88.49
Noninterest expense as a % of average
assets (2) 3.7 3.6
March 31, March 31,
Asset quality ratios (at period end): 2005 2004
----------- ----------
Nonperforming assets to period-end
loans (6) 0.49 % 0.07 %
Allowance for loan losses to period-
end loans 1.10 1.00
Allowance for loan losses to total
assets 0.74 0.65
Net loan charge-offs to average loans
outstanding (2) 0.01 0.01
March 31, March 31,
Capital and liquidity ratios: 2005 2004
----------- ----------
Equity to assets ratio 10.4 % 12.4 %
Loans to deposits 92.7 88.9
Bank of Oak Ridge
Financial Highlights (dollars in thousands, except share and per share
data)
(Unaudited)
Three months ended
March 31,
----------------------
Total Revenue 2005 2004 Change
------------ --------- --------
Net interest income $1,139 $852 33.7 %
------------ ---------
Fees and other revenue:
Customer service and other fees 94 70 34.3
Net realized gain on sale or call of
investment
securities available for sale 2 - n/a
Mortgage loan origination fees 45 34 32.4
Investment and insurance commissions 23 32 (28.1)
Income earned on bank owned life
insurance 42 23 82.6
Other 21 14 50.0
------------ ---------
Total noninterest income 227 173 31.2
------------ ---------
Total revenue $1,366 $1,025 33.3
============ =========
Three months ended
March 31,
-----------------------
Noninterest Expense 2005 2004 Change
------------ --------- --------
Salaries and employee benefits $553 $415 33.3 %
Occupancy and equipment 177 162 9.3
Data and items processing 166 81 104.9
Professional and advertising expenses 37 23 60.9
Other 308 226 36.3
------------ ---------
Total noninterest expense $1,241 $907 36.8
============ =========
Three months ended
March 31,
-----------------------
Average Balances 2005 2004 Change
------------ --------- --------
Total assets $135,332 $102,169 32.5 %
Loans receivable 88,697 67,100 32.2
Allowance for loan losses 970 667 45.4
Other interest-earning assets 37,971 29,492 28.8
Total deposits 98,183 66,401 47.9
Borrowings 21,874 17,552 24.6
Shareholders' equity 14,869 12,674 17.3
(1) Computed based on the weighted average number of shares
outstanding during each period.
(2) Ratios for the three-month periods ended March 31, 2005 and 2004
are presented on an annualized basis.
(3) Net interest margin is net interest income divided by average
interest earning assets.
(4) Net interest spread is the difference between the average yield on
interest earning assets and the average cost of interest bearing
liabilities.
(5) Efficiency ratio is noninterest expense divided by the sum of net
interest income and noninterest income.
(6) Nonperforming assets consist of non-accruing loans, restructured
loans and foreclosed assets, where applicable.
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